Analyzing The Effects Of Value-added Tax Reform From The Perspective Of A Firm

Taxation is an important means for the supply-side economics to regulate the economy.In fact,since the outbreak of the financial crisis,our government has been committed to the regulation from the supply side of the economy,and makes the tax reform as an important measure.Since the Third Plenary Session of the Eighteenth Central Committee of the Communist Party of China,"fiscal and taxation reform”has become a hot topic once again.VAT has always been China's largest tax,accounting for more than 40%for the proportion of the national total revenue for a long time.Our country reformed the business tax system in 1994,and established the system of production value added tax.Since 2004,after more pilots,our country had implement consumer VAT in the whole industry in 2009.Value-added tax reform is both a long-term key to improve the value-added tax system,but also a short-term measure to take an important part of structural tax cuts.Taxation is a bridge between government and enterprises.Tax policy also affects and adjusts the behavior choice and economic consequences between the two stakeholders.The introduction of VAT reform policy is bound to be many significant influences to the enterprise.This paper uses the method of theoretical analysis and empirical research to analyze the effect of VAT transformation from the perspective of enterprise microcosmic view.First of all,this paper introduces the background of VAT reform,reviewed the literature related to the VAT system and reform,analyzes the impact of VAT transformation on fixed assets investment,R&D innovation,labor employment behavior and enterprise value from the theory,Combed the mechanism of VAT reform affect the action of corporate behavior,Think that through this reform will enable enterprises to increase investment in fixed assets,promote investment in research and development,may increase the number of employees and increase their remuneration and ultimately increase the value of enterprises.Secondly,this paper uses the data of the financial statements of A-share listed companies from 2006 to 2015 to construct a DID model,focusing on the effect of VAT reform on corporate behavior.The empirical results show that the VAT transformation policy has a significant positive effect on the fixed assets investment,R&D innovation,labor employment behavior and enterprise value,and this effect is continuous.Finally,on the basis of theoretical analysis and empirical research,some suggestions are put forward for the government to formulate the relevant policies and the enterprises' response to the tax reform.Enterprises should strengthen their own management,rationally plan investment behavior,perfect internal control,pay attention to innovation,optimize asset structure and make full use of VAT reform policy;The government should attach importance to encouraging,guiding and gradually promoting policy reform,analyzing and improving the management system in specific industries,strengthening market monitoring and reducing the burden on enterprises,while paying attention to the development of new sources of taxation.